3 Excel File Edit View Insert Format Tools Data Window Help AutoSave ON EA#2F2021 Acrobat Tell me Home Insert Draw Page Layout Formulas Data Review View Calibri (Body) V 12 ' ' III General III III 1911 ilillil Paste BIV V y Av E $ %) ab 2.0 C29 fx B D E G 1 Question 2: Lease Accounting - Lessee (15 marks) 2 4 years 6 years QUESTION DATA: You, the Controller at Lupin Jewels Co. just completed a review of a new non-cancellable lease agreement with Ben's Leasing Co. After applying the appropriate lease classification criteria, you correctly concluded the lease to be treated as a capital lease in 3 accordance with IFRS. During your analysis, you obtained the following facts: 4 Lease term commencing April 1, 2021 5 Economic life of leased equipment 6 Fair value of leased equipment at April 1, 2021 $100,000 7 Guaranteed residual value at end of lease term $10,000 The asset will revert to Ben's Leasing Co. at the end of the lease term. Lupin jewels Co. uses the straight-line depreciation method for all 9 equipment. 10 You prepared the following correct amortization schedule for the first three lease payments: 11 8 Date 12 Payment Interest Principal Carrying value 13 1-Apr-21 $ 100,000 14 1-Apr-21 P1 14,239 14,239 85,761 15 1-Apr-22 P2 14,239 5,146 9,093 76,668 16 1-Apr-23 P3 14,239 4,600 9,639 17 67,029 REQUIRED: You are preparing the financial statement presentation for Lupin Jewels Co. year-end of December 31. Answer the following questions with respect to this lease agreement. 18 19 (1) What accounts and amounts will appear on Lupin's income statement for the year ending December 31, 2021? Use the drop-down 20 boxes to select the appropriate account name. Round all final antants to the nearest whole dollar using the ROUND formula 21 Account name Amounts *ROUND DOO decimals 22 23 24 25 (2). What accounts and amounts will appear on Lupin's balance sheet as at December 31, 2021? Use the drop down boxes to select the appropriate account rame under the classification provided. Round all amounts to the nearest whole dollar using the ROUND formula Cover Sheet 01 02 09 miser Page Layout Formulas Data Review View Acrobat Tell me Calibri (Body) V 12 V General V Paste BIU V V $ % ) C29 . fx B D E G (2). What accounts and amounts will appear on Lupin's balance sheet as at December 31, 2021? Use the drop-down boxes to select the appropriate account name under the classification provided. Round all amounts to the nearest whole dollar using the ROUND formula. Account Name Amount (S) 26 27 Classification 28 Non-current assets 29 30 31 Current liabilities 32 33 Non-current liabilities 34 "ROUND to decimals 36 37 38 39 40 13) What accounts and amounts will appear on Lupin's income statement for the year ending December 31, 2022? Use the drop-down 35 boxes to select the appropriate account name. Round all final amounts to the nearest whole dollar using the ROUND formula. Account name Amounts *ROUND to 0 decimals (4). What accounts and amounts will appear on tupin's balance sheet as at December 31, 2022? Use the drop down boxes to select the appropriate account name under the classification provided. Round all amounts to the nearest whole dollar using the ROUND formula. Account Name Amount (5) 41 42 Classification 43 Non-current assets 44 45 46 Current liabilities 47 48 Non-current liabilities 49 Cover Shoot Ready *ROUND to 0 decimals Q1 Q2 Q3 Q6 05 07